The daily business briefing: March 7, 2017
Snap shares drop for first time since IPO, ExxonMobil announces $20 billion in Gulf Coast refinery expansions, and more


1. Snap stock dives for first time since IPO
Snap shares plunged on Monday, falling by 12 percent in the first major selloff of the company's stock since its high-profile initial public offering of stock last week. Snap, parent of popular messaging app Snapchat, priced its IPO above the estimated range, and the shares soared in their market debut, rising by more than 40 percent on their first day of trading. The dive came after two more analysts added to recent bearish assessments of Snap shares. Needham analyst Laura Martin gave Snap an underperform rating, putting its fair value price at $19 to $23 a share, after it closed at $27.09 on Friday. "The sexier and more glamorous a company's IPO, the more likely it is to be overpriced at its IPO date," Martin said.
2. ExxonMobil to invest $20 billion in Gulf Coast refineries
ExxonMobil Corp. said Monday that it would spend $20 billion over 10 years to expand Gulf Coast refineries and chemical and liquefied natural gas plants. The company's chairman and CEO, Darren Woods, said the work would include 10 expansion projects around Beaumont and Baytown, Texas, and Baton Rouge, Louisiana, and a new chemical plant somewhere along the Gulf Coast. He said the projects would add 12,000 permanent jobs to a company work force of about 71,000. The projects also will provide 35,000 construction jobs.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
3. Republicans release plan to repeal and replace ObamaCare
House Republicans on Monday unveiled the American Health Care Act, their long-awaited proposal to replace ObamaCare. The legislation calls for freezing enrollment in the Affordable Care Act's expanded Medicaid program on Jan. 1, 2020, and capping future Medicaid funding. Until the end of 2019, states would be able to sign individuals up for expanded Medicaid. The proposal replaces insurance subsidies with refundable tax credits to help people pay for health coverage, and ends the penalty for failing to comply with the individual and employer mandates to buy insurance. The proposal also preserves two popular ObamaCare features, letting young adults stay on their parents' plans until age 26, and preventing insurers from dropping people with preexisting conditions. Debate starts in House committees this week.
4. GM cuts jobs at another plant with shift reductions
General Motors said Monday that it planned to cut the third shift at its Lansing Delta Township assembly plant, bringing to 3,200 the total number of job losses at three GM factories facing shift cuts. The decision came as GM prepared to stop manufacturing the old-generation GMC Acadia at the Lansing plant. The auto maker will continue making the Buick Enclave and Chevrolet Traverse there. GM said the change would take effect on May 12. "This is a very difficult day for many of the workers and their families," said Rep. Tim Walberg (R-Mich.).
5. Deutsche Bank shares drop, weighing down European stocks
Deutsche Bank shares dropped by 3 percent to a 2017 low on Tuesday, extending the German bank's losses since it announced plans to raise $8.5 billion in capital. The cash call raised fresh concerns about the bank's health, and dragged down financial stocks in Europe, where the market lost ground for a third straight day early Tuesday. U.S. futures pointed to a slightly lower open as the main U.S. indexes inched back from last week's records, as investors brace for a likely interest rate hike when Federal Reserve policy makers meet next week.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.
-
Gandhi arrests: Narendra Modi's 'vendetta' against India's opposition
The Explainer Another episode threatens to spark uproar in the Indian PM's long-running battle against the country's first family
By Harriet Marsden, The Week UK
-
How the woke right gained power in the US
Under the radar The term has grown in prominence since Donald Trump returned to the White House
By Chas Newkey-Burden, The Week UK
-
Codeword: April 24, 2025
The Week's daily codeword puzzle
By The Week Staff
-
Why Russia removed the Taliban's terrorist designation
The Explainer Russia had designated the Taliban as a terrorist group over 20 years ago
By Justin Klawans, The Week US
-
Inside the Israel-Turkey geopolitical dance across Syria
THE EXPLAINER As Syria struggles in the wake of the Assad regime's collapse, its neighbors are carefully coordinating to avoid potential military confrontations
By Rafi Schwartz, The Week US
-
'Like a sound from hell': Serbia and sonic weapons
The Explainer Half a million people sign petition alleging Serbian police used an illegal 'sound cannon' to disrupt anti-government protests
By Abby Wilson
-
The arrest of the Philippines' former president leaves the country's drug war in disarray
In the Spotlight Rodrigo Duterte was arrested by the ICC earlier this month
By Justin Klawans, The Week US
-
Ukrainian election: who could replace Zelenskyy?
The Explainer Donald Trump's 'dictator' jibe raises pressure on Ukraine to the polls while the country is under martial law
By Sorcha Bradley, The Week UK
-
Why Serbian protesters set off smoke bombs in parliament
THE EXPLAINER Ongoing anti-corruption protests erupted into full view this week as Serbian protesters threw the country's legislature into chaos
By Rafi Schwartz, The Week US
-
Who is the Hat Man? 'Shadow people' and sleep paralysis
In Depth 'Sleep demons' have plagued our dreams throughout the centuries, but the explanation could be medical
By The Week Staff
-
Why Assad fell so fast
The Explainer The newly liberated Syria is in an incredibly precarious position, but it's too soon to succumb to defeatist gloom
By The Week UK